Consumer Agency's Plan to Restore Accountability for Banks a Major Step Forward, But Bureau Should Ensure Full Rights for All Consumers

Contact:

Ben Somberg

Email:

ben.somberg@justice.org

Phone:

202-965-6645

Washington, DC—The following is a statement from American Association for Justice President Larry A. Tawwater in response to the Consumer Financial Protection Bureau (CFPB) announcing today the outlines of a rule to restore accountability for financial institutions that cheat customers:

“Today the CFPB takes a significant step toward restoring the fundamental right of consumers to seek accountability when they are cheated by banks and credit card companies that use forced arbitration clauses. Forced arbitration clauses grant corporations a license to steal and break the law, and should never be permitted in any setting.

The CFPB’s plan would reinstate the power of consumers to band together with other consumers to go to court when thousands are cheated in the same way by the same widespread corporate scam, but the plan fails to restore that same right to consumers wanting to pursue justice on an individual basis. The agency should strengthen its plan to ensure all consumers—whether joining with others or acting alone—have the right to hold corporations accountable when they break the law.

It’s not surprising that Wall Street banks are complaining about the prospect of being held accountable for ripping off and stealing from consumers and it shouldn’t be a deterrent for the agency. The CFPB must move forward with this important rulemaking.”

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The American Association for Justice works to preserve the constitutional right to trial by jury and to make sure people have a fair chance to receive justice through the legal system when they are injured by the negligence or misconduct of others—even when it means taking on the most powerful corporations. Visit http://www.justice.org.